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Advises on Bitcoin and Cryptocurrencies

Advice on cryptocurrencies

Advice on cryptocurrencies

The main current cryptocurrency, due to capitalization and presence in the headlines is Bitcoin, offering an appreciation of 2.064 percent in the last twelve months with a price on the spot market of 10,000 dollars.

However, maybe it’s not the best investment in cryptocurrencies for its trail and the price it sets, both cash and futures that jump-started last Sunday. So, George Tung, co-founder of Cryptos R Us says that we will see other virtual currencies that exceed the capitalization of Bitcoin in the next three to five years.

Bitcoin price

Bitcoin price, very volatile lately

And Hitesh Malviya of ItsBlockchain.com reminds people that the increase that we have recently seen in Bitcoin can be seen long term in any other cryptocurrency. “The industry is new and it will take at least a few years to become a main trend. I see ten times earnings of the investment, as the ones of Bitcoin from this year, in many cryptocurrencies.”

The problem is that investors barely know Bitcoin when there are already over 1,300 cryptocurrencies in the market. Only in the coninmarketcap.com screens offer the one hundred largest by capitalization. Yes, Bitcoin leads the list with $285,000 billion, but number 100, Chainlink, already capitalizes 87 million dollars.

How to Assess a Cryptocurrency

Although it is not easy, experts explain there are four key factors to choose a good virtual option in the unknown world of cryptocurrencies.

  • The first one is to study the team that supports the currency. Its experience, the companies that rely on the project, etc.
  • Secondly, they recommend to take a look at your utility. Cryptocurrencies are virtual coins that, if they worked in the market, they’d be an interesting asset, but they work on the Internet; so, the network has to accept and use them. If it doesn’t, it’s an empty cryptocurrency subject to speculation.
  • Thus, it is also important to determine at what point it is in the process. If you’re already on the market, whether it is in testing phase or beta phase, etc. there are many cryptocurrency projects but not all will come to something. Technology that gives them support and if it brings something new to the world of virtual currency or not, that will be a very important key factor.
  • Finally, experts recommend rating its price and motives that justify it, to do so, one must read and study the cryptocurrency before making a decision. The volatility and the risk associated with investing in alternative currencies force to think about things before doing them.

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